Property News > Mortgages remain in short supply

Mortgages remain in short supply

The dramatic 1.5% cut to base rates announced by the Bank of England last week has been welcomed by business, industry and homeowners. Yet despite this fall in interest rates and the money that has been pumped into the banking system by the government, there is still a shortage of mortgages for first time buyers.The approval rate for new mortgages has slowed substantially over past months. Around 57% less mortgages are being approved than at this time last year. The figures hit rock bottom in August when just £2.1 billion was put into new loans - the lowest amount since 2001.In the main, banks and building societies appear to be passing on last week's bank rate cut to its borrowers - at least in part. But mortgages that benefit from falling rates, such as tracker deals, are in short supply, and new borrowers are expected to find a hefty deposit before lenders will consider their mortgage application. The nervousness and uncertainty that overshadows the housing market makes it difficult to be optimistic. Many analysts predict that the next two years will produce further falls in property prices with only a slow recovery in market activity.Estate agents have borne the brunt of many a sarcastic comment during the rich pickings of recent good times, but they are suffering more than most at present. The RICS (Royal institution of Chartered Surveyors) reports that on average estate agents sold under 11 homes during the quarter August to October this year - the lowest level since the RICS began keeping statistics back in 1978. Agencies that expanded to meet the demand of a bullish market are now having to lay off staff or close branches to cope with the sudden downturn.Anyone wanting to sell their home is at the mercy of what has become a global economic crisis. An all pervading feeling of helplessness has engulfed vendors as they simply wait, hands tied, to see what the future will bring.Property Rescue provides a way of selling up and moving on despite current economic uncertainty. The offer is simple and straightforward with no hidden extras to pay and no obligation to proceed. Advice is free and confidential, and you can talk to an expert about your circumstances and your property. If you accept Property Rescue's offer for your home, the sale can proceed swiftly without the possibility of collapsing at a later date. You can be assured that your sale will go through, leaving you free to start planning for the future.For details and a free, no obligation chat, contact Property Rescue today.The dramatic 1.5% cut to base rates announced by the Bank of England last week has been welcomed by business, industry and homeowners. Yet despite this fall in interest rates and the money that has been pumped into the banking system by the government, there is still a shortage of mortgages for first time buyers.The approval rate for new mortgages has slowed substantially over past months. Around 57% less mortgages are being approved than at this time last year. The figures hit rock bottom in August when just £2.1 billion was put into new loans - the lowest amount since 2001.In the main, banks and building societies appear to be passing on last week's bank rate cut to its borrowers - at least in part. But mortgages that benefit from falling rates, such as tracker deals, are in short supply, and new borrowers are expected to find a hefty deposit before lenders will consider their mortgage application. The nervousness and uncertainty that overshadows the housing market makes it difficult to be optimistic. Many analysts predict that the next two years will produce further falls in property prices with only a slow recovery in market activity.Estate agents have borne the brunt of many a sarcastic comment during the rich pickings of recent good times, but they are suffering more than most at present. The RICS (Royal institution of Chartered Surveyors) reports that on average estate agents sold under 11 homes during the quarter August to October this year - the lowest level since the RICS began keeping statistics back in 1978. Agencies that expanded to meet the demand of a bullish market are now having to lay off staff or close branches to cope with the sudden downturn.Anyone wanting to sell their home is at the mercy of what has become a global economic crisis. An all pervading feeling of helplessness has engulfed vendors as they simply wait, hands tied, to see what the future will bring.Property Rescue provides a way of selling up and moving on despite current economic uncertainty. The offer is simple and straightforward with no hidden extras to pay and no obligation to proceed. Advice is free and confidential, and you can talk to an expert about your circumstances and your property. If you accept Property Rescue's offer for your home, the sale can proceed swiftly without the possibility of collapsing at a later date. You can be assured that your sale will go through, leaving you free to start planning for the future.For details and a free, no obligation chat, contact Property Rescue today.

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